Market Highlights

The anticipated value of the global precision guided munitions market was US$ 30.8 billion in 2021, and it is projected to increase at a compound annual growth rate (CAGR) of 7.2% from 2022 to 2028, reaching US$ ~43.4 billion.

Precision Guided Munitions Market CAGR

2022-2028

CAGR OF

7.2%

Precision Guided Munitions Market

The COVID-19 pandemic has posed several challenges for the military community. Although the COVID-19 pandemic had little effect on business, it did cause a number of economic problems. The global military industry has suffered since the beginning of the pandemic. The suspension of scheduled contracts, the decline in global defense spending in 2020, and the cessation of private funding have all marginally harmed the military sector. As a result of the research and development related to precision guided bombs, testing of some missile defense technology has been delayed. A decrease in output is also expected in many businesses due to the slowdown in the precision guided bomb supply chain caused by COVID-19. thereby influencing the growth of the precision guided munitions market.
Because US weapon systems operate better than any other, the US armed forces have a tactical advantage over any adversary in any weather. Including funds from the Base budget and the Overseas Contingency Operations (OCO) fund, the US Department of Defense (DoD) has requested USD 247.3 billion for acquisition funding for Fiscal Year (FY) 2020. This amounts to USD 143.1 billion for procurement and USD 104.3 billion for research, development, test, and evaluation (RDT&E).

To achieve the military force objective outlined in the National Defense Strategy, the budget proposal's spending amounts constitute a balanced portfolio approach. Of the USD 247.3 billion requested, USD 83.9 billion is used to fund the Major Defense Acquisition Programs (MDAPs), which are acquisition programs that surpass a cost cap established by the Under Secretary of Defense for Acquisition and Sustainment.

Most countries follow the Law of Armed Conflicts (LOAC) and try to minimize collateral damage, which includes inadvertently destroying civilian property and fatalities among civilians (CIVCAS). The Circular Error Probability (CEP) indicates a weapon's accuracy. Precision-guided weapons with low CEP are crucial for minimizing casualties among civilians and collateral damage. Whatever the purpose, casualties have a significant impact on public opinion and legislation, whether the operation is a high-intensity conventional combat or a low-intensity one such as counterterrorism and counterinsurgency. In today's increasingly digitalized culture, precision-guided weapons improve decision-making and reduce collateral damage, hence lowering casualties in the aftermath. In addition, precision-guided missiles effectively eliminate threats due to the dispersed, mobile, and agile nature of targets on battlefields.

Precision Guided Munitions Market

By Speed

Hypersonic

Non-Hypersonic

The Market will Grow

At the CAGR of:

7.2%

The Forecast Market

Size for 2028 in USD:

$43.4B

Warfare has evolved from conventional border-to-border combat to more urban-focused hostilities. These days, precision strikes are essential because they allow indirect fire in challenging terrain, where targets must be eliminated at low angles of fire. Precision-guided missiles are becoming increasingly necessary because to the increasing use of satellite networks, drones, and navigational aids to take out distant and valuable targets.

A multitude of federal and legislative laws and regulations, such as the Foreign Corrupt Practices Act, exchange restrictions, and import-export control regimes, apply to state-owned defense organizations. The inability of munitions manufacturers to export their products limits their access to international markets. This makes it difficult for munitions producers to reach worldwide markets. The issue of technology and weapon transfer was made worse when terrorist groups obtained access to a variety of cutting-edge weapons, including anti-tank guided rifles and high-tech land mines. As a result, the transfer of technology and weapons to other countries is now tightly controlled. This limitation affects the expansion of the precision guided munitions market.

Recent years have seen a number of directives and investments in the sector that should expand the precision guided munitions market as a whole. Among them are: 
• The development of new, high-tech missiles presents a significant risk to strategic locations and assets, such as military aircraft carriers and air bases. Among these new developments are nuclear-capable ballistic missiles and fast-cruising cruise missiles. Many countries are developing highly advanced weaponry capable of defeating sophisticated air defense systems such as the Medium Extended Air Defense System (MEADS), the S-400, and the Patriot Advanced Capability-3 (PAC-3). Russia, China, and India are among the countries that have produced hypersonic missiles, which are difficult for missile defense systems to intercept. India and Russia collaborated to build the BrahMos missile, which is difficult for previous missile defense systems to stop. Due to these developments, new-generation high-speed air defence electronic warfare systems are now necessary. Governments all over the world are investing heavily in state-of-the-art surveillance systems to fight stealth technology, even as they focus on creating stealth aircraft. The continued development of next-generation precision guided air and missile defense systems is expected to enhance the requirement for various technologies related to precision guided munition. These consist of radar, laser, INS, GPS, and more.

Precision Guided Munitions Market Segment Analysis

Precision Guided Munitions Market

By Product

xx%

Guided Rockets

Guided Ammunition

Tactical Missiles

Loitering Munitions

30.8

Total Market Size

USD (Billion), 2022

7.2%

CAGR

2022 - 2028

According to technology, throughout the projected period of time, the GPS segment of the precision guided munitions market is expected to grow at the fastest rate. In addition to its navigational skills, GPS is a satellite-based navigation system that offers accurate velocity data. Consequently, a number of producers of precision-guided ammunition (PGMs) focus on producing PGMs that integrate GPS technology.
Product categories are used to separate the markets for guided rockets, torpedoes, guided munitions, and loitering munition. Tactical missiles are suitable for many purposes due to their lower range and variety of warheads. They can be photographed from a range of platforms, perspectives, and modes because of their extreme adaptability. These weapons can target their targets precisely because of their navigation systems. The growing number of missile modernization projects being carried out worldwide is one of the factors propelling this segment's growth.

Precision Guided Munitions Market

By Region

The Market will Grow

At the CAGR of:

7.2%

The Forecast Market

Size for 2028 in USD:

$43.4B

Over the projected period, the precision guided munitions market is expected to be dominated by the semi-autonomous sector. Over the course of the projection period, it is expected that the autonomous sector would develop faster than the semi-autonomous segment. The emergence of the autonomous market can be attributed to the proliferation of lingering bombs by different forces worldwide.
The growth of this regional precision guided munitions market is due to the increasing purchases of precision-guided munitions by countries such as China, Japan, Australia, India, and Australia, as well as the increasing investments in the development of technologically advanced munitions in the region. The ongoing military modernization projects in the region contribute to the growth of the Asia Pacific precision guided munitions market.

Precision Guided Munitions Market Key Players

In the precision guided munitions market, there is an intense competition. The state of the sector and government assistance have a direct impact on the companies' growth. The quality and penetration of these companies' precision guided munitions in both target and emerging markets serve as differentiators. Additionally, a few recent large mergers and acquisitions in the sector have had a big impact on the competitive dynamics. 
As an illustration:
• In 2021, the US Department of Defense awarded Boeing a contract to supply the US Navy with JADM ammunition.
• In 2020, The Air Force Life Cycle Management Center (AFLCMC) awarded a USD 239.1 million modification contract to Raytheon Technologies' RTX Missiles and Defense subsidiary for six batches of StromBreaker.
These mergers and acquisitions have had an impact on the competitive landscape as a whole. In the precision guided munitions market, the following companies are prominent players:
Lockheed Martin, General Dynamics, Raytheon, Thales Group, BAE Systems, Northrop Grumman, and Elbit Systems

Precision Guided Munitions Market Scope: